South Africa rand softer, bonds extend gains after budget

JOHANNESBURG – South Africa’s rand was slightly weaker on Thursday against the dollar, which was lifted by higher Treasury yields, while bonds extended gains made in the previous session after the unveiling of a national budget that is taking aim at swelling debt levels.

At 0655 GMT, the rand was 0.13 percent softer at 11.68/dlr. Government bonds slightly firmer with the yield on the benchmark instrument due in 2026 down half a basis point to 7.98 percent. The yield fell 11.5 basis points on Wednesday.

Africa’s new leadership announced on Wednesday it was taking the politically risky step of raising value-added tax for the first time in 25 years, part of efforts to cut the deficit and stabilise debt under new President Cyril Ramaphosa.

Stocks were set for a soft opening at 0700 GMT, with the JSE securities exchange’s Top-40 futures index down 0.82 percent. – BusinessLive